Explained: What's driving the ongoing uptrend in metal stocks?

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Also Read: Copper prices hit all-time high to break March 2022 record; what's driving the rally? Copper on the LME has surged by 28% this year, while SHFE copper has increased by 25%. SHFE copper inventories remain low compared to the beginning of 2024, despite May typically being a period of strong copper demand in China. Nickel prices have also risen sharply, nearing $21,000 per ton in the previous trading session, marking their highest level since September 2023.

This surge is attributed to investor concerns over potential supply disruptions due to heightened tensions in New Caledonia, according to recent media reports. Other industrial metals have seen notable increases as well: aluminum rose to $2,628.50 per ton, zinc jumped to $3,070.50, lead increased to $2,316, and tin advanced to $34,625 on the LME during Monday's trade. Also Read: Gold hits new record high on rising US Fed rate cut expectations, renewed Middle East concerns Precious metals also reached new highs in the previous trading session.

Spot gold prices soared to a record $2,450.49 per ounce. So far this year, gold prices have risen over 18%, outperforming equities and bonds. Silver prices (spot) surpassed $32 per ounce for the first time since February 2013 during the last trading session.

This year, spot silver has surged by 32%, outperforming gold and becoming one of the best-performing major commodities. The rally in silver prices has been fueled by robust investment and industrial demand. Also Read: Hot Commodity Silver Sets Pace as Demand and Deficit Drive Rally Although metal prices have been steadily rising in 2024, traders received a significant boost last week after China, a major consumer of industrial metals, announced measures to support